The interested buyers should have some clear knowledge about the property rates before taking any serious loan service from a bank. Now if you have a proper and reasonable salary package and can accommodate your repayments in a quite easy way then there is no harm to take home loan in UAE. For this purpose, top banks of Dubai provide different types of packages according to the suited budget of a client. Top banks of Dubai typically limit the home loan so that to avoid the problem of repayments. Most of the people in Dubai not even in Dubai but also everywhere in the world have a desire to have their own home. But it is not as easy as we imagine. So banks, on one hand, provide the loan but also make some restrictions like the lending money would be no more than 25 percent of a borrower’s monthly income. Also, any lender either a bank or any financial institution will take into account the history of existing debts such as credit card debt, car loans, insurance plans. After calculating the existing debt, the package for a home loan is approved.
So if you really need a home loan then for sure you should approach for such a loan but if you are not well prepared for the repayments of a loan just avoid it. This my suggestion because I know banking sector is quite user-friendly with their clients so I think it will be not good to make disturbance just because of your satisfaction. Sometimes we ignore the ground realities and it is not a proper way to deal in a professional way.
Maximum time Period for a Home loan in UAE?
It depends upon the customer’s financial condition and also the type of bank one is approaching for a home loan. If you are a well settled and could place your complete asserts and in reality, you have. Then to take a home loan than an actual period is not a big deal for you. Also, the category of Wealth management bank is best suited for this purpose. One can take home loan for maximum a time period of 25 years. There is a problem that one should need to know. If the time period of loan goes on increasing then the interest rate on the loan will also be increased. So try to make complete all your loan as soon as possible. It is really difficult if you get into debt through interest rates. Well, also there is another side. If you are a high net worth individual, we advise you to take the loan with the maximum time period as it will increase your borrowing capacity.
How to repay the home loan in UAE?
Basically, there are two ways to repay the home loan. First one is fixed term repayment method and second is variable rate based method. If you have strong saving amount then prefer variable rate method and if you are dealing with your salary asserts then I think fixed rate method is most appropriate for you. Now the question what is the major difference between these two methods? First methods as clear from the name is for a fixed time period. The borrower has to pay all the loan payments within this time period otherwise you will get into interest amount. On the other hand, variable loan method is flexible and easy to handle but it is used for bigger loan amounts. In a variable scheme, method mortgage can be paid in a flow by doing all your stuff in a parallel fashion.
Well, there is a critical point in both methods that is
To avoid any risk involved in both methods while taking the services of home loan in UAE, we suggest you talk with a professional independent loan broker. Because these experts are frequently involved in loan matters and can guide you with maximum solutions and options.
Now the conclusive point is Mashreq bank which also comes under the category of wealth management bank is best suited for home loan packages. As it provides most reasonable interest on the loan amount.